BCC forgoes US$14million revenue

The Bulawayo City Council (BCC) has decided to maintain its 2024 commercial non-domestic property tax tariffs for the 2025 financial year, foregoing potential revenue exceeding US$14 million.

The decision, widely welcomed by residents and ratepayers, reflects a pragmatic and balanced approach to economic governance aimed at supporting business sustainability and protecting jobs in the city.

This development follows the Government's recent approval of BCC's 2025 budget, which initially included a proposed 127 percent increase in commercial property tax tariffs. However, after extensive consultations with the local business community and residents, the council opted not to implement the hike.

"The approved non-domestic property tax tariffs were 127 percent higher than the 2024 tariffs. These new tariffs were not implemented for billing as they would have significantly raised charges," said BCC Finance Director Mr Tennyson Mpunzi.

The council's decision came after detailed discussions involving representatives from the business sector, including the Confederation of Zimbabwe Industries (CZI) and the Zimbabwe National Chamber of Commerce (ZNCC), facilitated by the Ministry of Local Government and Public Works.

"These engagements revealed that businesses were seeking a reduction, not an increase, in the non-domestic rates tariff. In light of this, it was recommended that the tariff be maintained at 2024 levels," Mr Mpunzi explained.

Maintaining the tariffs at current levels results in an estimated revenue loss of US$14,331,139, a figure the council has accepted to support the economic viability of local businesses.

Council formally resolved: "That the 2024 commercial non-domestic rates tariffs be maintained in 2025 and that Council forego income of US$14,331,139 in respect of commercial non-domestic property tax."

The decision has been positively received by residents and ratepayers, who praised it as a responsible, people-centered policy.

Local resident Andrew Ndlovu expressed his support, saying, "We back Council's decision to put people and jobs first. While revenue is important, creating a hostile business environment would have long-term negative effects. This approach helps retain jobs and keeps essential services running without undue pressure on the private sector."

Mr Ndlovu also noted that the business-friendly stance, combined with Government approval of the 2025 budget, positions BCC as a responsive and forward-thinking authority committed to stabilising Bulawayo's economy despite fiscal constraints.

Meanwhile, BCC's debtor records indicate a rise in outstanding balances. As of the end of April 2025, debtors amounted to ZWG1.5 billion, up from ZWG1.4 billion at the end of March-a 6 percent increase of ZWG103 million.

Regarding debt collection efforts, 182,960 accounts were billed US$10.2 million in April, against an opening debt balance of US$115,101,086 as at March.

The council focused on recovering the current month's billing alongside a portion of arrears. Collection efforts achieved 62 percent of billed amounts, leaving 38 percent unpaid. The defaulters represent 68,525 properties requiring closer follow-up.

Existing teams successfully contacted 63,045 consumers, generating receipts totalling US$3,164,279.

The council remains committed to improving revenue collection while balancing the need to support the city's economic stability and growth.